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The Australian Office of Financial Management (AOFM) priced a new 1.25 per cent August 2040 bond via syndication on August 11. The AOFM targeted an initial issue size no larger than the final volume of A$1.25 billion (US$917.8 million). Initial price guidance for the forthcoming deal was a spread of 14-18 basis points over the August 2035 inflation-linked Treasury bond.
On August 10, Aurizon Network (Aurizon) (BBB+/Baa1) announced that it will update its Australian dollar debt investors commencing on August 19. Although the meetings are to update investors following the company's 2015 annual results, arrangers ANZ, Commonwealth Bank and National Australia Bank say a capital markets transaction may also follow.
Queensland Treasury Corporation kicked off Australian deal flow for the first week of August, with a A$1.25 billion (US$920.5 million) syndicated increase of its 2025 benchmark bond, while flow in New Zealand sustained a steady pace. Elsewhere, Resimac readied its second RMBS of 2015.
Common equity will do the heavy lifting in the latest capital-boosting effort by an Australian major bank. ANZ Banking Group (ANZ) announced on August 6 its intent to conduct a A$2.5 billion (US$1.8 billion) institutional share placement (ISP) and a A$500 million share-purchase plan (SPP). The move comes as clarity begins to emerge around the timing and quantum of capital changes in Australia, particularly in relation to mortgage risk weights.
On August 6, Volkswagen Financial Services Australia (VW Australia) (A/Aa3) priced a new four-year, fixed-rate domestic benchmark deal. According to joint lead managers Commonwealth Bank and RBC Capital Markets, indicative pricing guidance on the forthcoming deal was in the area of 95 basis points over semi-quarterly swap, and the deal was increased from a minimum A$100 million (US$73.7 million).
On August 6, Swedish Export Credit Corporation (SEK) (AA+/Aa1) priced an increase to its 2024 Kangaroo bond. According to KangaNews data, the tap will is the first increase to this line, which was first introduced in May last year at pricing of 96 basis points over Australian government bond.
On August 5, Westpac Banking Corporation (Westpac) completed the bookbuild on its latest domestic tier-one capital notes offer. A statement lodged with the Australian Securities Exchange (ASX) reveals that the deal – Westpac Capital Notes 3 – was increased to A$1.25 billion (US$ 877.2 million from A$750 million and the margin set at the tight end of 400-420 basis points over bank bill swap rate price guidance.